The influence of organized labor has been waning for years. Among the reasons: the growth of "offshoring," which has thinned the ranks of traditionally heavily-unionized domestic manufacturing industries; a sustained period of economic expansion (up until recently, at least), which convinced many workers that they did not need union backing to make their way up the economic ladder; and, a lack of political support in the wake of the secular shift to the right following Reagan's election as President in 1980.
However, several developments suggest the pendulum is set to swing the other way.
First is the fact that a crashing economy, widespread and growing resentment over perceived "fat cat" bailouts, and Democratic control of the executive and legislative branches will almost certainly shift the moral high ground and balance of power away from financiers and senior corporate executives to those who are seen as having lost out -- the workers.
In addition, energy, security, and political concerns appear to be driving nascent efforts to have more goods produced locally instead of overseas, countering some of the competitive pressures that have undermined the bargaining position of domestic employees.
Finally, economic insecurity, wealth and income inequality, anger and resentment over all that has been lost, and the perception that those at the top are increasingly vulnerable, will motivate employees to become more activistic and to bolster their bargaining position by banding together to achieve strength in numbers.
With that, I expect that we will see many more incidents like the one described in the following Reuters report, entitled "Laid-Off Workers Occupy Chicago Factory, Seek Pay."
Invoking Main Street resentment of Wall Street's federal bailout, some 200 workers entered their third day of occupying a shuttered Chicago window and door factory on Sunday, demanding that Bank of America agree to pay them severance plus vacation pay.
Workers belonging to the United Electrical, Radio and Machine Workers union began their peaceful occupation of the plant on Friday after family-owned Republic Windows & Doors said it was closing after Bank of America canceled its line of credit.
The workers said Republic Windows & Doors gave them only three days notice of Friday's closing instead of the 60 days required by law, and owes them roughly $3,500 per worker including unused vacation pay.
A union spokeswoman said Bank of America is not letting the company pay the workers.
"We're just shocked that Bank of America, after receiving $25 billion in bailout money, not only do they refuse to extend credit to companies but, to add insult to injury, they don't allow these companies to fulfill their legal obligations to their workers," union spokeswoman Leah Fried said.
The downturn in home construction doomed the plant, which has manufactured windows and doors for more than 30 years.
Bank of America was among several U.S. banks to receive funding from a $700 billion federal bailout package designed to stabilize the financial system.
The laid-off workers hoisted placards saying, "Bank of America: You got bailed out. We got sold out."
According to the Chicago Tribune, the bank said it was not responsible for Republic's financial obligations to its employees. A Bank of America spokesman was not immediately available for comment.
Officials of Republic Windows & Doors also could not be reached for comment.
The parties were expected to meet on Monday.
